Registration of a foreign company’s representative office in Ukraine

A representative office is not a separate entity — it always acts on behalf of the parent company and does not have its own authorized capital. A subsidiary (usually in the form of an LLC), on the other hand, is a separate legal entity. A foreign company can be its founder, but in general, a subsidiary is a separate business unit that is independently responsible for its activities.

It all depends on your goals. A representative office is appropriate when you do not plan to conduct full-fledged commercial activities in Ukraine. For example, you just want to have an official representative office to control quality, for marketing, informational, or other purposes. Or you want to «test the waters» in the Ukrainian markets without creating a separate legal entity.
A subsidiary is needed if you plan to be a full-fledged participant in the Ukrainian market: conclude contracts, supply goods or services, be a VAT payer, etc.

Yes, if it conducts commercial activities. Such a representative office is called «permanent,» and it must be registered with the tax authorities. As a rule, a permanent representative office pays income tax, as well as personal income tax, a single social contribution, and a military levy for employees.

If the representative office does not conduct business activities, it does not pay taxes. However, it must still be registered with the State Tax Service.

Yes, like any Ukrainian LLC. It can be subject to income tax or a single tax — depending on the chosen taxation system. It also pays personal income tax, a single social contribution, and a military levy for employees.

It differs in the degree of flexibility and independence. A permanent representative office conducts activities and enters into agreements on behalf of the parent company and in its interests. It is not liable for its «actions.» A subsidiary, on the other hand, is a completely independent entity.

Yes. Almost all documents issued abroad (the articles of association or regulations of the parent company, documents of ultimate beneficial owners, etc.) must be translated, notarized, and apostilled or legalized through a consulate. However, the specific procedure depends on the country and the international agreement between it and Ukraine (if any).

Yes, indeed, the procedure for registering a representative office of a foreign company changed in 2024. The procedure has now been simplified slightly. The registration functions were transferred from the Ministry of Economy to state registrars. It is also no longer necessary to obtain a permit from the Ministry of Economy. However, the list of documents that must be submitted for registration has been updated.